(My first post it months, I guess)
Last I checked, Nintendo was (believe it or not) the most profitable gaming company in the world. Sony may sell more, but they have to spend a lot of that money on advertising and stuff. Nintendo gets the most bottom-line profit. Source:
http://www.dfcint.com/news/prmar2205.html
"The seventeen companies in the report reported fiscal 2004 revenue of $24.5 billion, down 3% from fiscal 2003. So far fiscal 2005 revenue is up 3%. The four leading companies, Sony, Nintendo, Electronic Arts and Microsoft, dominate the market and reported fiscal 2004 revenue of $16.7 million. In terms of revenue, Sony is the clear market leader, having generated $45 billion in game related revenue from fiscal 1998 through 2004. However, Nintendo has been the most profitable company, earning about $7 billion in operating income from fiscal 1998 to fiscal 2004, compared with about $4.5 billion for Sony (from its games division) and $1.8 billion for Electronic Arts. Microsoft is clearly an up-and-coming powerhouse, although the company has reported heavy losses from its games division."
Granted, it's info from last year, but since I recall hearing that Nintendo only reported a loss once in its entire history (which would go back to production of Hanafuda cards in the late 1800s), and even then, only for a quarter of a year (the whole year was still profitable), I don't see what could have happened in a single year that would put it in the hole.
Incidentally, people have been saying that Nintendo would go the way of Sega ever since Sega went there. That was, what? 3-4 years ago? Sega went where it went because it had no other choice; it WAS in the hole.